One in two Aussies does not believe banks act in their best interests when refinancing

A further 49 per cent of home owners said they do not believe the banks always have their best interests at heart.

Despite a mistrust in the banking industry, the research showed that 94 per cent of home owners trust a mortgage broker’s loan recommendations.

Susan Mitchell, CEO of Mortgage Choice, said consumers are often confused by the process of refinancing their mortgage. 

“Faced with what can be an overwhelming choice of home loans, home owners want to be confident they are making the move to a loan that will improve their financial wellbeing through a lower rate, improved loan features, or both,” Mr Mitchell said. 

The CEO also highlighted how banks are limited with their information and are likely to only know the rates provided by their own financial institution. 

“While banks can provide information on their own product suite, they do not have an in-depth understanding of competitors’ products,” she said.

“Mortgage brokers not only provide a broad selection of loans across a variety of lenders, they also take the time to explain why a particular loan is being recommended.” 

“This is very reassuring for consumers and demonstrates that mortgage brokers work in the home owners’ best interests at all times. This important combination underpins the exceptional level of trust that home owners place in their mortgage broker,” Ms Mitchell concluded.

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